New York City Mayor Michael Bloomberg's plans to bid for The Financial Times Group, which includes the world's leading business daily Financial Times (FT) as Pearson Plc, the publisher of FT, is reportedly planning to sell the daily.
Even as the global media industry undergoes a major shakeup, there are early signs of consolidation involving some of the iconic media barons. One likely development on this count is Mayor Bloomberg’s apparent plan to make a bid for The Financial Times Group, which includes the world’s leading business daily Financial Times (FT).
According to reports, Pearson Plc, the publisher of FT, is planning to sell the daily. This is partly fueled by the fact that the group will soon lose two of its top executives. Marjorie Scardino, Pearson’s longtime chief executive, who once said the paper would be sold “over my dead body,” is leaving the group on Dec. 31. Rona Fairhead, CEO, will leave at the end of April.
Bloomberg could find the group’s approximate valuation of $1.2 billion rather attractive given that it had clocked revenues of $7.6 billion in 2011. But it may be added that The Financial Times Group has suffered huge reverses after its newest desktop terminal product struggled to catch on. In the first nine months of 2012, the company reported revenue of $9.88 billion, a 3 percent decrease from the period a year earlier. This might be a cause of concern for Bloomberg.
If all the pieces come together, Bloomberg could complete the buy-out of FT by early next year although there is an emerging view within Bloomberg LP that an investment in a digital property will be more rewarding and sustainable.
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